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Save Our Community was founded in the movement to resist Wal-Mart's development in Rosemead, California. Now, it has become a general site for news, information, gossip, talk, and blogging about Rosemead. We also have stories about South San Gabriel, San Gabriel, Montebello, and occasionally about Pico Rivera, El Monte, South El Monte, Alhambra, Temple City, and other nearby communities. Your host is Todd. If you want a blog just sign up, get approved, and start writing. Good posts will be moved onto the home page.

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Wal-Mart Shuts Down Store as it Unionizes

Wal-Mart shut down a store on the 9th, because it was starting to get unionized.

http://www.nytimes.com/2005/02/10/business/worldbusiness/10cmart.html

That's pretty amazing. A union is a bargaining unit -- they go into negotiations to try and raise wages and benefits, mainly. Wal-Mart says it's because the store is not making enough money -- but let's get real. The timing is no coincidence. (The wages haven't risen yet, and there's no guarantee that they would. The shutdown is based on speculation.)

It says something when stores opt to shut down rather than negotiate. Either the store is afraid, or the store has so much power it can "punish" the employees *and* the managers.

It could be both. Power can come from its exercise, especially when it's used forcefully. (In other words, it can be a intimidation move.)

I think what they're afraid of is widespread unionization of all its stores, which would cut into profits. Not only that, but Wall Street would pull out of the stock somewhat, and harm the overall capitalization of the company. Big businesses, and Wal-Mart in particular, wins big every time they post tiny increases in profits. A 1/4% increase in profitability turns into big gains on stock prices, and is worth millions to the company.

Contrast this with smaller businesses that need to post far greater gains to be considered good investments.